VIENNA, Feb 13 (Reuters) - Austria's president tried on Thursday to navigate towards a centrist ruling coalition excluding the far-right Freedom Party (FPO) after the FPO's unsuccessful bid to lead a government for the first time.
The breakdown of the FPO's negotiations with the conservative People's Party (OVP) on Wednesday, its sole potential coalition partner, has sent Austria back to square one four-and-a-half months after an election in which the eurosceptic, Russia-friendly FPO received about 29% of the vote.
This marks the longest period since World War Two to form an Austrian government. The options are forming a ruling coalition, minority government, or temporary expert cabinet; otherwise, a snap election seems likely where polls indicate the FPO would gain more ground over other parties.
The surge of populism in Europe has complicated the formation of stable governments, weakening the bloc's efforts to stimulate a sluggish economy and contend with a confrontational U.S. President Donald Trump and intensifying global competition.
In a national address on Wednesday evening, President Alexander Van der Bellen, an 80-year-old former Greens leader, highlighted the increasingly polarized political landscape and urged parties to find common ground through compromise.
"Compromise in Austria is a treasure, a kind of cultural heritage that has always served us well," he expressed. It is uncommon for a single party to hold a majority in Austria.
Van der Bellen is scheduled to meet individually with all parliament party leaders on Thursday except the FPO.
Last month, the FPO was tasked with government formation after a failed centrist attempt excluding it. The OVP, who led the failed talks with the Social Democrats (SPO) and liberal Neos, pinned the blame on the SPO for the breakdown, as did the Neos, citing the SPO's push for taxing wealth and inheritance.
Both the Neos and SPO have signaled readiness for new negotiations with the OVP.
Political scientist at the University of Salzburg, Reinhard Heinisch, pointed out that the near-miss with an FPO-led government could motivate the political class to cooperate and build consensus, especially if faced with the prospect of it reoccurring after a snap election.
The political deadlock coincides with Austria experiencing two consecutive years of economic contraction, pressing for a swift resolution as all parties acknowledge the need to urgently reduce the budget deficit, expected to surpass 4% of economic output.
"I don't believe there is time for prolonged negotiations. Everything has been covered already," remarked OVP leader Christian Stocker, referring to the centrist discussions that made progress on many issues, albeit not the most contentious ones.
SPO managing director Klaus Seltenheim expressed the party's willingness to compromise in discussions for a coalition or an expert government requiring parliamentary approval. He emphasized the importance of stabilizing the budget, enhancing the job market, and managing prices.
"We have had promising talks on these matters previously," he noted.
Neos leader Beate Meinl-Reisinger mentioned that voters are weary of unproductive discussions after months of negotiation standstill.
"Now it is truly about taking genuine political responsibility for the country. I believe the public has exhausted its patience," she conveyed to reporters.